MPs put to task National Bank on the proposed take-over by KCB

Kenya National Bank. [Beverlyne Musili/Standard]

National Bank of Kenya (NBK) officials have been put to task over claims of underhand dealings being cut in the proposed multi-billion takeover of the lender by KCB Bank.

NBK officials, however, said they were unaware of the takeover bid details as KCB had only given them a notice of intention, adding that full details will be shared out to them by the Capital Markets Authority (CMA).

The National Assembly Finance Committee members were shocked to learn that as of yesterday, NBK is not only unaware of the exact offer price by KCB, but has equally not given its offer price of how much it wants to sell the bank.

The lawmakers claimed that while NBK said it was transparent in the way the transaction was being done, the deal seemed to be shrouded in mystery.

They said the deal was being rushed through instead of other options being considered. “It is evident that there is a hand behind this transaction. We want to know whether this is coming from the National Treasury or National Social and Security Fund (NSSF),” said Joseph Limo who is the chair of the committee.

“You are actually not telling us the truth. Why are you calling for an Annual General Meeting, to talk about what you don’t have?

You are not being truthful at all and that is why you are taking us round like children.”

The MPs have also indicted the bank, claiming that while it is being sold at Sh6.1 billion, its was worth between Sh9 billion and Sh15 billion, while its liabilities stand at Sh6.9 billion.

According to the legislators, based on information forwarded to them, majority shareholders including National Social Security Fund that owns 48.05 per cent of the shares and government through the National Treasury Principal Secretary that owns 22.5 per cent of the shares are aware of the takeover details but have declined to give them out.

The committee comprising of MPs Kimani Kuria (Molo), Samuel Atandi (Alego Usonga) Mohammed Ali (Nyali), Jimmy Angwenyi (Kitutu Chache North) Chris Omulele (Luanda), Erastus Kivasu (Mbooni) and Ndirangu Waihenya (Roysambu) accused NBK of initiating the takeover bid yet they know that the problem is with the management and not the lender.

Mbooni MP Erastus Kivasu demanded to know why the deal to sell off NBK was being rushed yet the problem was about management.

This was after NBK Chief Executive Wilfred Musau failed to shed light on who initiated the takeover talks and the offer price by KCB.

Mr Musau said the bid motivated by the bank operating below core capital since 2013.